ROI Calculator

Find the percentage return from an investment.

Net gain: $500.00

50%

ROI: 50%

How ROI works

Return on investment (ROI) measures the percentage gain or loss on an investment relative to what it cost — the most common way to compare the efficiency of different investments or initiatives.

Enter the total gain (or return) from the investment and its total cost. The calculator returns the net gain and the ROI percentage.

ROI is a simple ratio, not a forecast. It doesn't account for the time period over which the gain occurred — for comparing investments over different timeframes, an annualized measure like CAGR is more appropriate.

The formula

ROI = (Gain − Cost) ÷ Cost × 100

Subtract the cost of the investment from the gain it produced, then divide by the cost and multiply by 100.

Worked example

$1,500 gain on a $1,000 investment

($1,500 − $1,000) ÷ $1,000 × 100 = 50% ROI.

Frequently asked questions

What counts as "gain"?

The total value or return received from the investment — revenue generated, cost savings realized, or the sale value, depending on what you're evaluating.

Does ROI account for time?

No — a 50% ROI over one month and a 50% ROI over five years are very different outcomes. Use the CAGR Calculator when you need to compare returns across different time periods.

Can ROI be negative?

Yes — when the gain is less than the cost, ROI is negative, indicating a net loss on the investment.

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